The price of new property has leapt 8.9% in Madrid, according to research by the real estate consultants Aguirre Newman.
The average flat in Madrid city is 109 square metres (sqm) big and costs €320,000, which works out as 2,937 €/sqm, reveals the report from Aguirre Newman on the residential property market in Madrid and suburbs.
The purchase cost of new housing in Madrid may have risen 8.9% over 12 months to the end of September, but it is still down 37% compared to its high of 4,657 €/sqm in 2007.
Resale house price are up 4.8% since the end of 2014, according to asking price data from the property portal idealista.com
By area, new build prices increased in prime and second-tier locations, but remained stable in other locations, so prices are not rising across the board. As in other parts of Spain, the recovery in prices is limited to the best locations.
The average buyer in Madrid today needs capital of €62,395 to cover deposits and transaction costs, and can then expect to pay around 1,362 €/month in mortgage repayments at current interest rates.
Aguirre Newman forecast that new property prices in prime areas of Madrid will rise by 5% next year, but remain stable or even fall slightly in other areas.